Best News Network

India and UK regulators close to resolving clearing house impasse


By Subhadip Sircar


The United Kingdom government has said that Indian clearing houses overseen by the nation’s central bank meet its regulatory requirements, a move that may help resolve the ongoing impasse over allowing overseas regulators oversight over local counterparties.

 


“The legal framework of India, as implemented by the Reserve Bank of India, provides for an effective equivalent system for the recognition of central counterparties authorized under other regimes of other countries,” according to the UK Treasury documents. This change is a prerequisite for Bank of England to recognize overseas counterparties. 


The move now paves the way for British banks like Barclays Plc and Standard Chartered Plc, with a significant presence in India, to continue trading in the South Asian nation using the Clearing Corp. of India platform. 


Hundreds of billions of rupees of trading in government bonds and interest-rate derivatives was threatened to be disrupted with European and British banks required to move away from the platform as the European Securities and Markets Authority, or ESMA, withdrew recognition to six Indian central counterparties from May 2023. The British ruling would have kicked in from July. 


For non-British banks, the standoff continues with ESMA’s withdrawal of recognition to counterparties. German and French regulators in February extended by 18 months the time their banks have to transfer trading positions from Indian clearing houses.

First Published: Jun 23 2023 | 1:03 PM IST

Stay connected with us on social media platform for instant update click here to join our  Twitter, & Facebook

We are now on Telegram. Click here to join our channel (@TechiUpdate) and stay updated with the latest Technology headlines.

For all the latest Business News Click Here 

 For the latest news and updates, follow us on Google News

Read original article here

Denial of responsibility! NewsAzi is an automatic aggregator around the global media. All the content are available free on Internet. We have just arranged it in one platform for educational purpose only. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, all materials to their authors. If you are the owner of the content and do not want us to publish your materials on our website, please contact us by email – [email protected]. The content will be deleted within 24 hours.